GOLD prices held steady on Tuesday (Sep 17) to hover near record highs scaled in the previous session, as markets anticipate the beginning of a US easing cycle, with expectations that it might start with an outsized rate cut.
Spot gold was flat at US$2,582.84 per ounce, as at 0020 GMT. Bullion rose to a record high of US$2,589.59 on Monday.
US gold futures were also steady at US$2,609.90.
All attention will turn towards the US Federal Reserve this week where they are expected to announce at least a 25-basis-point cut to interest rates at the conclusion of its September policy meeting on Wednesday.
Markets are currently pricing in a 62 per cent probability of a 50-bp easing at the conclusion of the two-day meeting, against 43 per cent on Friday. The odds have narrowed sharply after media reports revived the prospect of a more aggressive easing.
Zero-yield bullion tends to be a preferred investment amid lower interest rates and geopolitical turmoil.
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Markets will also focus on US retail sales data due at 1230 GMT.
Meanwhile, the US dollar weakened to a two-week low in the previous session, making greenback-priced gold less expensive for other currency holders.
Elsewhere, the Bank of Japan is expected to keep monetary policy steady next week, but signal that further interest rate hikes are coming and highlight the progress the economy is making in sustaining inflation around its 2 per cent target.
Investors also digested news from Sunday that Republican presidential candidate Donald Trump was the subject of a second assassination attempt.
Political instability often supports gold prices, as investors seek the safety of the precious metal amid unstable or unpredictable conditions.
SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, said its holdings rose 0.20 per cent to 872.23 tonnes on Monday.
Spot silver fell 0.2 per cent to US$30.70 per ounce, platinum rose 0.4 per cent to US$984.81 and palladium gained 0.4 per cent to US$1,080.78. REUTERS
